Star Tribune skips quarterly debt payment of $9 million

StarTribune ^ | 10/1/08 | Matt McKinney

[ButThreeLeftsDo]

The Star Tribune newspaper has stopped making payments to its senior creditors, the chairman of the company said Tuesday.

The decision to skip a $9 million quarterly payment on its $432 million debt allows the newspaper to conserve cash while attempting to restructure, said company Chairman Christopher Harte.

All options, including a bankruptcy filing, are on the table as the newspaper and its advisers negotiate with the paper’s lenders. “We are looking at an incredibly wide range of options, but nothing’s imminent,” said Harte.

The newspaper still makes money, Harte added, and he doesn’t expect the missed payment to affect relationships with vendors or advertisers.

In addition, the company continues to invest in “midlevel” capital expenditures such as the newsroom’s current program of upgrading computers and its e-mail system.

[ButThreeLeftsDo]

I'd make money, too....If I didn't pay MY bills...

[ButThreeLeftsDo]

Dinosaur Media Ping......

[Tublecane]

“The newspaper still makes money”

Let me get this, they’re $432 million in debt and they make money. I may not be an accountant, but I think I’m missing something here.

[astyanax]

Unfortunately Nick Coleman has his job at Fox9 where he can continue to be an asshat.

[trad_anglican]

I think I’m missing something here

You can maintain a level of debt and still be profitable. But, you can't make a reasonable claim to profitability by virtue of not paying your bills.

[astyanax]

"and he doesn’t expect the missed payment to affect relationships with vendors or advertisers. "
In other words, he still expects to be paid, he's just not paying.
Nice business model if you can get it!

[ButThreeLeftsDo]

Meanwhile......

Agency files sexual harassment suit against Star Tribune

[ButThreeLeftsDo]

Unfortunately Nick Coleman has his job at Fox9 where he can continue to be an asshat.

Can't get to the TV remote fast enough, some days!

[Tublecane]

The (Red) Star could make a reasonable claim to profitability if it were leveraging the $432 million to expand readership, for example. Since quite the opposite is happening, I’d say their debt is a pretty big liability.

[Interesting Times]

Die.

[Eric in the Ozarks]

The Strib is dying because fewer and fewer people read it. Real estate and auto ads are going elsewhere. Page 1 news stories are as slanted as the editorials. Its a shame so many trees are sacrificed to print this rag.

[pillut48]

[scooby321]

Craig's list has killed the classifed ads.

Economy in Auto's is down and so are Ad revenue

They are Toast

[astyanax]

When I moved back to MN in the early 90’s I had a free subscription for 3 months.
I occasionally picked up the Sunday paper for the ads.
I think I've purchased one this year. Took the ads and left the paper on the counter.
Good riddance.

[pillut48]

The same thing happened with us with the Dallas Morning News—we had subscribed for several years, but then the bias became so blatantly liberal that to save our blood pressure :-) we cancelled our subscription. Occasionally we get the Sunday paper, but it’s been awhile since we still get outraged at some of the blatant anti-Republican/conservative/Christian viewpoints in what are supposed to be ‘straight news’ stories!!

And the DMN had the absolute gall and nerve to raise their rates from 50 cents to 75!! For that garbage?! I don’t think so!! I think the Sunday rate went up to $2.50—again, I don’t think so!

I get almost 100% of my news info from right here at FR, for free! And almost 100% reliable! Can’t beat that with a stick.

[Eric in the Ozarks]

When we lived in MN, we took the Sunday Strib and were offered the Saturday at half price. We passed on the offer but later were offered Friday free if we took the Saturday at half price. Eventually we got the Thursday and Friday for free with a half priced Saturday.
Looking at this left wing screed four days a week was more than I could take so we canceled everything.

[bestrongbpositive]

Now that's GREAT !! This liberal, PC, POS Democrat rag is in a law suit for sexual harassment...there is a god in heaven after all.. Oh how I would like to be on that jury.

[Reo]

Wow! If the Red Star goes under, what are we going to use to wrap our walleye fillets in???

[ButThreeLeftsDo]

The Food Saver thingie works great.....

[astyanax]

This was interesting.
Going through old posts (I like to see what I’ve written once I’m lucid!), and on a whim googled (actually dogpiled) Nick Coleman and asshat.
Amazing results and the 2 same interchangeable!